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ResourcesCorporate and Tax AdvisoryThailand Tax LawThai Tax Forms: PND 54 Withholding Tax & Profit Remittance Return

Thai Tax Forms: PND 54 Withholding Tax & Profit Remittance Return

Transcript of the above video:

As the title of this video suggest we are discussing Thai tax forms; specifically we are talking about this one, the PND 54.

What is this used for? Well the PND 54, and we will go ahead and put that up on the screen for you just to get a sort of a glance at it, the PND 54 is utilized for essentially dealing with the withholding tax associated with the dispersal of funds to an offshore individual or entity; offshore from the Kingdom of Thailand,. So we are talking possibly dividends to a company that is using a company here in Thailand, for example as a subsidiary. We are talking about perhaps a commission of some sort; some sort of fee paid off shore.  You are going to go ahead and need to deal with this form here which as stated a withholding tax form because generally speaking Thailand requires withholding tax to be paid to funds that are being dispersed offshore to those companies not regularly doing business here within the Kingdom. That being said, depending on the circumstances the withholding tax, it is going to be circumstantially dependent to the way that's going to be paid out how it is going to be dealt with but at the end of the day it is probably going to be assessed, especially if it is for the purposes of things like dividends, you are definitely going to need to deal with withholding tax.

That being said, there are exceptions to this. For example pursuant to the Board of Investment, pursuant to their promotion powers, they are allowed to promote businesses in the Kingdom and provide certain benefits not least of which is either the suspension or cancellation of withholding taxes such as these; such as required under this form. Basically that is done in an effort to go ahead and promote, currently at this time, things like technological exchange is being brought into Thailand or just general business promotion to bring in sort of larger cap  sort of entities in order to business here in the Kingdom. You want to go ahead and have those folks be incentivized to bring in substantial or direct investment and to bring in certain technology exchanges and suspension of this kind of withholding tax can be undertaken depending on those circumstances.

But that being said in sort of a more routine context, just general business being done here within the Kingdom, generally speaking different dispersal of funds to oversee offshore entities is probably going to go ahead and require the filing of one of these forms.